Ralph has an account balance of $608.93 in a savings account that earns interest at a rate of 3.5% compounded daily. If Ralph opened the account nine years ago, what was the principal deposit rounded to the nearest dollar?

$464

$589

$603

$444

Question

Ralph has an account balance of $608.93 in a savings account that earns interest at a rate of 3.5% compounded daily. If Ralph opened the account nine years ago, what was the principal deposit rounded to the nearest dollar?

 $464

 $589

 $603

 $444

lukecrayonz · Answer

@ganeshie8

ganeshie8 · Answer

this is not as hard as the previous problem

ganeshie8 · Answer

lets say, x is the principal deposit 9 years back.
then, x has grown to 608.93 in 9 years compounding daily at a rate of 3.5 %

ganeshie8 · Answer

use your compound interest formula :-

$x(1 + .035/365)^{365*9} = 608.93$

solve x

ganeshie8 · Answer

you need to use calculator to find x

lukecrayonz · Answer

444!

ganeshie8 · Answer

perfect ! http://www.wolframalpha.com/input/?i=x%281%2B.035%2F365%29%5E%28365*9%29+%3D+608.93

lukecrayonz · Answer

I'll make new posts for each question @ganeshie8